SMALL BUSINESS

MANAGEMENT
DEFINITION OF SSI
 SSI is an undertaking in which the
investment in fixed assets whether
held on ownership or on lease or on
hire purchase does not exceed Rs 100
lakh.
 Ancillary Unit
 Export-oriented unit

 Tiny Unit

 Women entrepreneurs

 SSSBE
CLASSIFICATION OF SSI

Traditional SSI can be different types:

 Khadi units

 Handicrafts

 Village industries

 Handlooms

 Coir

 Sericulture
Modern SSI units consists of the
following:
 Ancillary Unit

 Export-oriented unit

 Tiny Unit

 Women entrepreneurs

 SSSBE
CHARACTERISTICS
 Born out of individual skills and initiative
 Operational flexibility
 Low cost of production
 High capacity to innovate exports
 Utilization of local resources
 Labour intensive
 Beehive of entrepreneurship
 Financial discipline is weak
ADVANTAGES
 Capital requirement is low
 Export oriented
 Promotes entrepreneurs
 Employment opportunities
 Geographical diffusion of skills and technology
 Linkages between agriculture and industry
 Gateway to rural development programmes
 Involve shorter gestation period
CHALLENGES
 Mentoring and advocacy-SIDO’s role
 Credit – Specialized banks, CGT

Scheme, collateral waiver

 Technology- information, procurement

and finance
 Market access

 Management support
 Infrastructure
 Globalization

 Procedures

 Absence of integration (horizontal

and vertical)
 Absence of industry benchmarks
PROSPECTS OF SSI
 Quality control
 Marketing

 Recovery of receivables

 Professionalism in management

 Inventory control
THANK YOU